A registered retirement income fund (RRIF) is an extension of your RRSP. With a RRIF, you can convert your RRSP into retirement income. Each year, you’ll need to withdraw the minimum amount required by law.
- Keep managing your investments during retirement.
- Increase the amount and frequency of your withdrawals.
- Grow your investments tax-free.
If you don’t want to convert your RRSP into a RRIF, you can:
- Use the funds to purchase an
- Cash out your RRSP savings (you’ll be fully taxed on this withdrawal).
LIF and LRIF
You’ll need to convert your LIRA or Locked-in RRSP into a Life income fund (LIF) or Locked-in retirement income fund (LRIF) by December 31 of the year you turn 71. The LRIF is only available in some provinces.
- Obtain guaranteed income
- Grow your investments tax-free during your retirement.
- Keep managing the investments from your former employer’s pension plan.